League One's Radical Salary Cap Plans Get Thumbs Down from EFL Board
A proposed £4.7m salary cap for clubs in League One, accompanied by a luxury tax on those that overspend, is set to be dismissed by the English Football League (EFL) board. Eighteen clubs, including Peterborough and Reading, had written to the EFL's chair, Rick Parry, pushing for the measures as part of their bid to tackle financial instability in the division.
The median loss among 24 clubs in League One last season was a staggering £5.2m, prompting the clubs to advocate for stricter controls on spending. A fixed squad salary allowance and a 100% tax on overspending above the cap were key proposals. The idea is that this would create a fund to be redistributed among compliant clubs, providing a financial safety net.
However, the EFL board has rejected the plans, choosing instead to explore alternative measures. While acknowledging the concerns raised by League One clubs, Parry expressed willingness to discuss ways of promoting greater sustainability and reducing reliance on owner funding. Nevertheless, the board's decision means that radical reforms will not be implemented in League One.
The move comes despite the EFL having previously considered introducing salary caps in Leagues One and Two after the Covid pandemic left many clubs facing severe financial challenges. However, a legal challenge from the Professional Footballers' Association (PFA) thwarted these plans four years ago.
The PFA is now threatening to challenge the Premier League's new financial regulation known as anchoring, which would limit each club's spending on transfers and player wages to five times the central media revenue received by the bottom club in the previous season. The Premier League clubs will vote on anchoring at their shareholders' meeting next Friday.
The EFL Board's decision not to back the salary cap proposals has raised concerns about the feasibility of pursuing different financial regulations across divisions. While the Championship has adopted similar rules to the Premier League, with a focus on profitability and sustainability, Leagues One and Two have traditionally used more lenient measures.
For now, League One clubs will be forced to rely on other methods to get spending under control. The existing limit of 60% for player expenditure remains in place, although this is lower than the 50% cap in League Two, where spending on managers is also included.
The EFL's decision not to back the salary cap plans has left League One clubs with uncertainty about how to address their financial issues. As one would expect from a league with such significant financial instability, tensions between those pushing for reform and those opposed are likely to remain high in the coming weeks.
A proposed £4.7m salary cap for clubs in League One, accompanied by a luxury tax on those that overspend, is set to be dismissed by the English Football League (EFL) board. Eighteen clubs, including Peterborough and Reading, had written to the EFL's chair, Rick Parry, pushing for the measures as part of their bid to tackle financial instability in the division.
The median loss among 24 clubs in League One last season was a staggering £5.2m, prompting the clubs to advocate for stricter controls on spending. A fixed squad salary allowance and a 100% tax on overspending above the cap were key proposals. The idea is that this would create a fund to be redistributed among compliant clubs, providing a financial safety net.
However, the EFL board has rejected the plans, choosing instead to explore alternative measures. While acknowledging the concerns raised by League One clubs, Parry expressed willingness to discuss ways of promoting greater sustainability and reducing reliance on owner funding. Nevertheless, the board's decision means that radical reforms will not be implemented in League One.
The move comes despite the EFL having previously considered introducing salary caps in Leagues One and Two after the Covid pandemic left many clubs facing severe financial challenges. However, a legal challenge from the Professional Footballers' Association (PFA) thwarted these plans four years ago.
The PFA is now threatening to challenge the Premier League's new financial regulation known as anchoring, which would limit each club's spending on transfers and player wages to five times the central media revenue received by the bottom club in the previous season. The Premier League clubs will vote on anchoring at their shareholders' meeting next Friday.
The EFL Board's decision not to back the salary cap proposals has raised concerns about the feasibility of pursuing different financial regulations across divisions. While the Championship has adopted similar rules to the Premier League, with a focus on profitability and sustainability, Leagues One and Two have traditionally used more lenient measures.
For now, League One clubs will be forced to rely on other methods to get spending under control. The existing limit of 60% for player expenditure remains in place, although this is lower than the 50% cap in League Two, where spending on managers is also included.
The EFL's decision not to back the salary cap plans has left League One clubs with uncertainty about how to address their financial issues. As one would expect from a league with such significant financial instability, tensions between those pushing for reform and those opposed are likely to remain high in the coming weeks.
, but I guess the EFL board was too cautious. I mean, we've seen what happens when clubs go into administration – it's a nightmare! 
The £5.2m median loss is crazy, and I can see why the League One clubs want to do something drastic. But, at the same time, introducing radical reforms is a big ask, especially considering the legal challenges from the PFA in the past.
The Championship has already taken a step in the right direction with their profitability and sustainability focus.
. It's time for the EFL board to come up with some creative solutions – we need them to get this league back on track! 
. but still, you can't help feeling that there's a lack of urgency when it comes to addressing financial instability in lower leagues... maybe they should've considered anchoring as an option instead? 
. Now they're just gonna keep on tinkering around the edges instead of making real changes 
.
It's just gonna create more tension and uncertainty in the lower divisions, like now 
. Can't we just have some consistency across all leagues instead of always playing catch-up? 
. Maybe they should've considered the benefits of a salary cap for League One clubs in the first place 
. This is just gonna lead to more problems down the line... 
so they're not gonna implement that £4.7m salary cap in League One like wut is wrong with them?? i mean i get it clubs have been struggling financially but come on, some ppl just wanna do things right lol